The number of approvals for remortgaging also increased in March by volume from 28,084 to 29,511 and by value from £3.8bn to £3.9bn compared to February.
Dominic Hennessy, director of mortgage brokerage Just Us Mortgages, said: “It's surprising that lending rose in March, even slightly, given how flat the market is at present. The strong likelihood is that borrowing will edge back further in the coming months, with lender appetite diminishing.
“The high street banks are clearly introducing measures to reduce the amount they lend. In part this is because they are nervous but it also has a lot to do with Basel III, which requires them to boost their capital adequacy and buffers.
“Even if they did want to lend more, in many cases they can't.”
